Consumer spending continues to fall

Data from Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, reveals that spending on essential items grew 4.9% year-on-year, as ‘circuit breaker’ restrictions meant many Brits stayed at home and shifted their spending to essential stores and online.

Supermarkets saw a 17.9% year-on-year rise in expenditure, up from 13.9% in October, helping to offset a 23.8% decline in fuel.

In addition, food and drink specialist stores – which includes greengrocers, butchers and bakeries – grew 54.3%, up 3.6% on last month, as shoppers continued to support local businesses.

The research also shows a third of Brits say they are feeling more upbeat about their finances and job security due to news about the Covid-19 vaccines. Confidence in household finances remained steady at 69%, up slightly from last month, the research reveals.

Raheel Ahmed, head of consumer products, said: “Despite the restrictions in November, Brits are feeling more positive about their household finances as they start to prepare for the festive season. Christmas trees are going up just that bit earlier, and many are planning to spend more treating their loved ones after such a testing year.

“Supermarkets, local shops, and online retailers have all performed strongly, while the longer evenings at home saw spend soar on digital subscriptions and electronics, helped by new consoles hitting the market.”